USE THE FOLLOWING INFORMATION FOR QUESTIONS 6-9 ;

Dodge Inc. acquired 15% (15,000 shares) of Gates Corp. on January 1, 2017 for $105,000 when the book value of Gates was $600,000 and the fair

market value was $700,000. During 2017, Gates reported net income of $150,000 and paid dividends of $50,000. The fair market value of Gates stock

rose to $800,000 as of December 31, 2017. Dodge used the fair value method to record its investment in Gates in 2017.

On January 1, 2018, Dodge purchased an additional 25% (25,000 shares) of Gates for $200,000 which resulted in Dodge having significant influence over

Gates. Any excess cost over book value was attributed to goodwill with an indefinite life. Dodge decided to change to the equity method to account for its investment in Gates in 2018. During 2018, Gates reported net income of $200,000 and paid quarterly dividends of $20,000. The amount is assumed to have been earned evenly throughout the year. On june 30, 2018 Dodge sold 10,000 shares of Gates for $100,000.

Based on those facts, calculate:

6. The income reported by Dodge for 2017 with regard to the Gates investment.

7. Balance in the investment in gates account just prior to the sale

8.gain(loss) on sale if gates stock

9.balance in the investment Gates account at December 31, 2018?